The Change Mariner

Kenya: Investment, Not Aid

allAfrica.com:

Seven months into the Narc Government, Britain's Secretary for International Development, Baroness Valerie Amos, came calling with a stern message: The Government should not make foreign aid a central component of its economic recovery programmes.

...

Significantly, as foreign aid was tripling, between 1983 and 1991, foreign direct investment was declining. Investors were actually leaving, contrary to the popular fallacy that foreign aid inflows also attract inward foreign direct investment.

Herein is a lesson for Kenya. Countries that are big on begging and receiving aid tend to be shunned by most investors. Characteristically, aid-receiving countries are perceived as poor, with undeveloped or poorly-developed markets and infrastructures.

In addition, they tend to be viewed as lacking appropriately skilled human resources. Otherwise, they would not be begging in the first place.

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